The State Bank of Pakistan (SBP) has formally recognized 1LINK (Private) Limited as a Designated Payment System under Section 4(1) of the Payment Systems & Electronic Funds Transfer Act, 2007. The designation, which took immediate effect following the central bank’s notification, marks a major milestone in strengthening the digital payments ecosystem of Pakistan.
With this recognition, 1LINK cements its position as a core player in the national payment infrastructure. The company operates Pakistan’s primary interbank network, facilitating critical services such as automated teller machine (ATM) withdrawals, bill payments, interbank fund transfers, and a wide range of digital financial transactions that millions of individuals and businesses rely upon every day.
The SBP’s decision to grant 1LINK official designation underscores the regulator’s commitment to improving oversight, security, and governance of the country’s payment systems. By bringing 1LINK directly under its regulatory framework, the central bank aims to ensure higher standards of efficiency, consumer protection, and financial stability, all of which are essential for building trust in the rapidly expanding digital finance landscape.
Industry experts view this development as a timely step in Pakistan’s digital finance journey, particularly as the country witnesses rapid adoption of online banking, e-wallets, and instant fund transfer platforms. The growing demand for digital transactions, driven by changing consumer behavior and fintech innovations, requires robust and secure payment system operators. 1LINK’s designation provides formal assurance to financial institutions and consumers alike that its operations align with national regulatory standards.
1LINK’s role in the ecosystem has grown significantly over the past decade. Beyond ATM and interbank connectivity, it has been instrumental in expanding services such as utility bill payments, merchant transactions, and government collections through digital channels. By creating a single, interoperable network, it has contributed to reducing inefficiencies across the financial sector and supporting Pakistan’s broader goals of financial inclusion.
For the SBP, this move fits within its broader agenda of modernizing payment infrastructure and moving the economy towards a cash-light model. Initiatives like the Raast instant payment system, combined with the oversight of key players such as 1LINK, reflect a long-term vision where digital payments form the backbone of financial services in the country.
Market analysts also suggest that the designation could help encourage greater collaboration between banks, fintechs, and regulators, creating opportunities for innovative products while maintaining systemic security. In a time where cybersecurity threats are a growing concern worldwide, tighter supervision of payment system operators ensures better risk management and resilience against potential disruptions.
The official recognition of 1LINK as a Designated Payment System not only strengthens its institutional credibility but also signals to international stakeholders that Pakistan is building a more reliable and transparent digital finance ecosystem. With this step, the SBP continues to position itself as a proactive regulator, adapting to the evolving needs of a digital-first financial world.